Octagon 88 Resources Continues to Grow Asset Portfolio by Completing Two Additional Significant Acquisitions
LAS VEGAS--(BUSINESS WIRE)-- Octagon-88 Resources Inc. "Octagon 88" (OCTX) is pleased to announce that two significant acquisitions have been made by the corporation in pursuit of commencing the Octagon 88 Resources Conventional Oil Division whilst expanding its Heavy Oil Division.
On January 22, 2013 the Corporation launched its conventional oil division by acquiring mineral rights in the Red Earth area of north western Alberta. These leases have two drill ready targets in the Keg River structures- known for 40 API sweet crude oil with regionally productive wells and quick net backs. Regionally initial production wells attained a range of 50 to 500 bbl/d.
On January 22, 2013 the Corporation acquired an additional 10% of the outstanding shares of CEC North Star Energy Ltd.(http://www.cecnorthstar.com) CEC North Star is a privately held heavy oil project with 67 sections of heavy oil mineral rights being actively developed. These leases have been well mapped and contain large Petroleum Initially-In-Place development potential.
This acquisition increases the Octagon 88 Resources holdings to 32% of outstanding shares and as a result makes the Corporation the largest single shareholder of CEC North Star Ltd.
For additional information please refer to the Corporations filings and web site:
Octagon 88 Resources Inc.
Octagon 88 Resources Inc. is a Nevada based, publicly traded Oil & Gas Exploration, Development and Production Company. The current focus is on the exploration and development of Canadian based onshore oil and gas properties with extensive land base already established. The short term project is located in the Red Earth area in north central Alberta, with two drill ready projects with light sweet crude opportunities to provide quick turnaround on capital and long term cash flow. The other major project area is heavy oil in the North Peace River area with a large contiguous land base, well mapped out Petroleum-initially-in-Place consisting of both Bluesky and Elkton/Debolt zones with opportunities for both primary recovery and conventional SAGD developments of the heavy oil within the target zones.
CEC North Star Ltd.
CEC North Star Energy Ltd is a non-public Calgary based Energy Corporation with a substantial Oilsands lease holding in the Peace River block of north western Alberta Canada.
CEC North Star has acquired sixty-seven (67) sections of Oilsands leases. The independent petroleum engineering firm conducted a feasibility study 139 Mil (NPV @ 10% fully risked) based on a typical four sections development of the Elkton/Debolt. In addition the property is prospective for Bluesky/Gething oil sands formations which may lead to early primary production development similar to other projects in the Peace River Block offering significant production potential.
CEC North Star has entered into joint venture on adjoining properties consisting of 23 sections or 14,720 acres which may increase PIIP (Petroleum Initially in Place) to in excess of three (3) billion barrels.
CEC North Star's vision is ultimately 100,000 bbl/d of bitumen from these lands and objectives are to create value by developing these Oilsands properties using scalable project development targeting multiple 5-10,000 bbl/d facilities with stakeholder involvement at every stage - Environment, Occupational Health and Safety are of paramount concern. Use of known technologies while remaining flexible to adopt new processes to maximize recovery of oil in place while reducing operating costs to the targeted sub $20/bbl and a relatively quick development schedule and lower capital costs compared to other oilsand projects resulting in maximum return on capital invested and quicker shareholder returns.
This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Forward looking statements in this press release include statements about our drilling development program. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the timing and results of our 2013 drilling and development plan. Additional factors include increased expenses or unanticipated difficulties in drilling wells, actual production being less than our development tests, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.
KEYWORDS: United States North America Canada Nevada
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